Bond yields were treading water on Thursday amid lack of fresh cues though hopes for rate cut at the central bank’s June policy review and Friday’s sale of the new 10 year benchmark bond weighed on the sentiment to some extent.
The Government of India announced the sale of four dated securities for Rs 16,000 crore on May 22, 2015, including (i) 7.68% GS 2023 for a notified amount of Rs 3000 crore, (ii) New 10 year GS for a notified amount of Rs 9000 crore, (iii) 8.24% GS 2033 for a notified amount of Rs 2000 crore and lastly (iv) 8.17% GS 2044 for a notified amount of Rs 2000 crore.
On the global front, US treasuries yield declined on Thursday as a batch of disappointing economics report revived worries about the US economy and prompted further questions whether the Federal Reserve will raise interest rates later this year. Meanwhile, Oil prices edged down on Friday after rising more than 2 percent in the previous session, buoyed by lower U.S. crude inventories and geopolitical tension in the Middle East.
Back home, the yields on 10 year Government Stock was trading steady at Thursday’s close of 7.88%.
The benchmark five year swap rate was trading 1 basis point lower at 7.11% from its previous close of 7.12% on Thursday.